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Personal Loans for Gig Workers

Let’s understand the role of personal loans for gig workers. Read the pros and cons to make the right choices to secure and manage sudden financial needs.
Personal Loans for Gig Workers
Personal Loans for Gig Workers
What are personal loans for gig workers? These loans are designed to accommodate gig workers' fluctuating income structures, whether they are negotiating a job move or managing necessary living needs. Read on to know more!
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As gig work becomes increasingly diverse, where flexibility is critical, financial stability remains a constant concern. Personal loans have become a crucial resource to address gig workers’ unique challenges. In this blog, you can explore the ins and outs of personal loans for gig workers, offering insights into their benefits, considerations, and potential pitfalls.

Personal Loans for Gig Workers with Good or Bad Credit

Gig workers, known for their flexibility, often face financial uncertainties. Whether sporting a good or bad credit history, access to personal loans can be a game-changer. The gig economy in the United States is on the rise, with 36% of respondents identifying themselves as gig or independent workers in a 2022 survey. 

While gig work can liberate individuals from the constraints of a traditional 9 to 5 job, it simultaneously introduces financial uncertainties. A prime example is gig workers’ responsibility to procure and finance equipment. Moreover, navigating periods of job transitions may necessitate a quick infusion of cash to meet essential living expenses such as rent and groceries. There are a lot of creditable loan-providing platforms that cater to gig workers with both good and bad credit, like Beem, Happy Money, Lending Point, Axos, etc.

Top Personal Loans for Gig Workers

Here is the list of top providers for personal loans for gig workers

Beem

Beem is an enticing option for gig workers who want personal loans for their financial betterment or various uses. Beem helps gig workers achieve optimal savings, seamlessly blending user-friendly features with robust security measures. Beem stands out as a compelling solution, leveraging low-cost interest on personal loans from various lenders to suit gig workers from any field. To get personal loans from a non-conventional method, Beem is your go-to option.

ProsCons
Keeping track of your spending and repayment dates is easy.The monthly membership fee comes in at $9.99.
Organizes repayment extensions up to 3 times.Higher loan amounts are subject to restrictive eligibility criteria.
Added features included with subscriptions.There may be a two-day wait for standard transfers.

Lightstream

LightStream is a SunTrust Bank enterprise that stands out for extending favorable credit terms for personal loans to gig workers. Boasting low APRs and flexible terms, LightStream is an attractive choice for those pursuing advantageous personal loan options, including gig workers. With a keen emphasis on identifying and valuing creditworthiness, LightStream provides gig workers with good credit histories with a route to affordable and tailor-made personal loans.

ProsCons
Zero fees.No website pre-qualification option.
Autopay rate discounts.No direct creditor payment for debt consolidation loans.
Extended repayment terms.High minimum loan requirement.
Rate Beat program and Experience Guarantee.

Upstart

Upstart’s fixed-rate personal loans cater to gig workers, covering various expenses with flexibility from $1,000 to $50,000 and three- to five-year terms. Its origination fees range from 0% to 8%, and checking rates won’t impact your credit scores. Upstart’s unique approval model, considering education and employment, yields 27% more approvals and 16% lower rates than traditional lenders.

ProsCons
Flexible loans.Origination fees (0% to 8%).
Innovative approval model.Credit score dependency.
No impact rate checks.Limited repayment terms (3-5 years).

Happy Money

Happy Money pioneers a compassionate and innovative approach to evaluating the financial landscape of potential personal loan recipients. Happy Money gives access to personalized guidance and intuitive resources and helps gig workers embark on a journey to enhance their overall financial well-being. 

Beyond merely providing loans, Happy Money creates a positive and empowering borrowing experience, aligning with gig workers’ broader financial goals. For gig workers seeking more than a transactional lending relationship, Happy Money emerges as a standout partner, distinguished by its holistic and understanding methodology.

ProsCons
Creditors receive a direct payment.Limited loan use.
Credit scores are available for free.An origination fee may be charged.
Low maximum APR.Co-borrowers and co-signers are not allowed.
Provides credit reports to all three credit bureaus.There is no interest rate discount.

Discover

Discover offers no-credit-check personal loans for gig workers with perfect credit scores (above 689), catering to gig workers nationwide. Applications can be filled online or over the phone, and if approved, funds are deposited within one business day. Despite the absence of rate discounts, Discover provides gig workers with flexible repayment terms and a complimentary monthly credit scorecard for easy tracking.

ProsCons
There is no origination fee.There may be a late fee charged.
Get pre-qualified with a soft credit check.Co-signing or joint loans are not available.
Financing within 24 hours.No rate discount.
Mobile app for managing loans

Lending Point

LendingPoint offers lightning-fast funding, delivering loan funds within one business day. With a credit score requirement as low as 660 and a holistic assessment approach, it’s an attractive choice for gig workers with varying credit profiles. Be cautious of potential origination fees, which can go up to 10%, and the maximum APR of 35.99%. Comparing rates with other lenders is advisable for the best terms for gig workers.

ProsCons
Swift fundingPotential origination fees of up to 10%
Credit score requirement (660)High maximum APR (35.99%)
Holistic assessment approach

PenFed

PenFed’s personalized personal loans cater to diverse borrowers, including gig workers. Although initially focused on the military, they are accessible to anyone with a $5 savings account deposit. Tailored for individuals with excellent credit, PenFed uniquely integrates membership applications into the loan process, distinguishing it from other credit unions. It is a streamlined choice for gig workers seeking versatile and inclusive loan options.

ProsCons
Pre-qualification is available with a soft checkSome perks are limited to credit union members
Option to include a co-signerNo direct creditor payments for debt consolidation loans
Autopay offers a rate discountLoan amounts and terms not prominently displayed online
Expedited funding within one week

Universal Credit

Universal Credit personal loans are tailored for gig workers with low credit scores, aiming to improve their credit profile. However, note that initial rates are relatively high compared to other lenders catering to bad credit scores. It is advised to compare loan offers before applying. Operated by online lender Upgrade, Universal Credit is distinguishable by focusing on borrowers with bad credit scores (629 or lower) and higher debt levels, providing a potentially easier qualification path. 

Upon approval, Universal Credit customers access Upgrade’s features, including credit-building tools, a mobile app, and a creditor payment discount. This makes Universal Credit a valuable option for gig workers seeking financial support and tools to enhance their credit and manage their finances efficiently.

ProsCons
Tailored for low credit scores, aiding improvementStarting rates are comparatively higher
Operated by Upgrade, providing access to its featuresCompare offers before applying
Focus on bad credit and higher debt qualificationLimited information on loan amounts and terms online

Avant

Avant connects fair- and bad-credit gig workers (689 or lower credit score) with personal loan lenders online. While charging origination and late fees, it offers consistent rates for bad credit. Avant reports to major credit bureaus and allows prequalification checks. Although lacking flexible features, Avant’s loans are a solid choice for gig workers managing midsize expenses.

ProsCons
Rapid fundingPossible origination fee
Pre-qualify with a soft credit checkNo co-signer, joint, or secured loans
Convenient loan management through the mobile appNo direct creditor payments for debt consolidation loans
Diverse repayment term options
Customer service is available seven days a week.

Best Egg

Best Egg, an online lender, caters to fair to good credit borrowers with unsecured and secured personal loans. Notably, it allows loan funds to be sent directly to up to 10 creditors, making it handy for debt consolidation, which is frequently used according to the lender. Borrowers can also leverage home or car fixtures as collateral for secured loans, although an origination fee is expected. Best Egg is versatile for gig workers seeking quick and tailored financial solutions.

ProsCons
Pre-qualification with a soft credit checkAn origination fee is charged
A wide range of loan amountsNo rate discounts
Secured loan optionsNo choice for the initial payment date
Direct payment to creditors for debt consolidationNo mobile app for loan management.
There are no late fees.

Axos

Axos Bank provides quick access to funds within two days, catering to gig workers with urgent expenses. Notably, it allows prequalification without affecting credit scores and boasts a lower maximum APR of 20.84% compared to the typical 36% from other lenders. However, the need for co-borrower or cosigner options and origination fees (1.00% – 2.00%) are considerations for gig workers seeking personal loans.

ProsCons
Two-day funding timeline for quick accessNo co-borrower or cosigner option
Prequalification without impacting credit scoreOrigination fees (1.00% – 2.00%) are deducted from the loan
Lower maximum APR (20.84%) compared to competitors

Prosper

Prosper offers small personal loans starting at $2,000 with competitive APRs as low as 6.99%. Firm credit profiles of gig workers benefit from the lowest rates, but joint applications increase qualification chances for others. However, gig workers should consider potential origination fees (1% to 5%), a high maximum APR (up to 35.99%), and a three-business-day funding delay after the agreement signing. Ideal for gig workers seeking quick and accessible financial support with clear terms.

ProsCons
Small personal loans starting at $2,000Potential origination fee (1% to 5%)
Competitive APRs as low as 6.99%High maximum APR (up to 35.99%)
Joint applications increase qualification chancesFunding delays up to three business days after the agreement

Wells Fargo

Wells Fargo provides unsecured personal loans exclusively to existing customers, featuring minimal fees and flexible terms. Available nationwide, gig workers can pre-qualify online with a soft credit check. The Wells Fargo mobile app offers a specialized small-dollar loan, the Flex loan, for pre-approved customers. A convenient and customizable choice for gig workers seeking financial solutions.

ProsCons
Unsecured personal loans for existing customersLimited to existing Wells Fargo customers
Minimal fees and versatile loan optionsLimited information on specific loan terms online
Nationwide availability; pre-qualify online
Flex loan for pre-approved customers via mobile app

How to Apply for Personal Loan for Gig Workers in Beem

Here are some easy steps to follow to apply for a personal loan through Beem for gig workers: 

  • Download the Beem app, register yourself, or visit the Beem website
  • Navigate to the “Personal Loans” section
  • Complete a simple online application
  • Provide necessary documents and information
  • Await loan approval and funding, often with quick processing for gig workers

Eligibility Requirement

Here are some standard eligibility requirements one must meet: 

  • Must be a gig worker seeking a personal loan
  • The minimum age required is (usually 18 or 21 years old)
  • Proof of steady income from gig work
  • Valid identification documents
  • Meet any credit score or financial stability criteria set by Leander
  • Compliance with the specific eligibility criteria, which may vary.

Can I Get a Personal Loan as a Gig Worker?

Yes, gig workers can get a personal loan, and many lenders, including Beem, offer financial products tailored to their needs.

Are There Particular Loans for Gig Workers?

Indeed, some lenders offer specialized loans catering to gig workers, recognizing the variability of their income and employment structure. These loans often provide flexibility and tailored terms to accommodate the specific needs of gig economy professionals.

What Are the Advantages of Personal Loans for Gig Workers?

Here are some advantages of personal loans for gig workers:

– Flexibility: Personal loans for gig workers often come with flexible terms to accommodate variable income.

  • Many lenders, recognizing the nature of gig work, provide swift approval and funding processes.
  • Tailored loan products address the specific financial needs and challenges gig workers face.
  • Unlike traditional loans, personal loans for gig workers may not require a traditional 9-to-5 job or regular pay stubs.
  • Timely repayment of personal loans can contribute to building or improving the credit history of gig workers.

What Credit Score Does a Gig Worker Need for a Personal Loan?

The demanded credit score for a personal loan for gig workers varies. While some lenders may consider lower credit scores, having a credit score in the fair to good range (around 580 or higher) generally enhances approval chances and may qualify for more favorable terms.

How Much Can I Borrow with a Personal Loan as a Gig Worker?

The amount you can borrow with a personal loan as a gig worker varies by lender. Typically, it depends on your income, credit score, and the lender’s terms. Be sure to check with the lender for their specific loan limits.

Is a Personal Loan the Best Way to Borrow Money as a Gig Worker?

A personal loan can be a convenient option for gig workers, offering flexibility and quick access to funds. However, exploring various financing options while considering the specific financial needs and circumstances is essential to determine the best borrowing solution.

How Do I Get a Personal Loan for Gig Workers?

  • Look for lenders, like Beem, that offer personal loans tailored for gig workers.
  • Ensure you meet the eligibility criteria, including income requirements and credit score.
  • Prepare required documents, such as proof of income and identification.
  • Complete the online application on the lender’s website or app.
  • Once submitted, await loan approval, with some lenders providing quick processing for gig workers.

Where Can I Get a Personal Loan for Gig Workers?

You can explore personal loan options for gig workers from various sources, including options mentioned above, online lenders, traditional banks, and credit unions. Platforms like Beem can specifically cater to the unique needs of gig workers, offering tailored financial solutions.

Conclusion

Personal loans for gig workers serve as a valuable financial tool, providing flexibility, quick access to funds, and tailored solutions to address the unique challenges faced by individuals in the gig economy. Platforms like Beem and other lenders offer opportunities for gig workers to secure financing, allowing them to manage their finances effectively and pursue their professional endeavors with more excellent financial stability. As the gig economy continues to boost, these specialized personal loan options are crucial in supporting gig workers’ diverse and evolving financial needs.

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Author

Team Beem

Team Beem

Team Beem brings you the latest in the world of personal finance to you. From tips and tricks on how to manage money to how to get cash for emergencies, Beem is your destination for all the information you need to be smart about your money.

Editor

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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